Amazon slashes subsidized price on Fire Phone to 99 cents ahead of Apple's 'iPhone 6' unveiling

Posted:
in iPhone edited September 2014
With hours to go before Apple is expected to unveil its next-generation iPhone, Amazon slashed the price on its first foray into the smartphone market, the Fire Phone, to just 99 cents with a new two-year service contract.




The Fire Phone sale comes just a month and a half after the handset first shipped to consumers, sporting a 4.7-inch display with an array of cameras for 3D head tracking. Previously, the 4G LTE Amazon Fire Phone was priced at $199 with a two-year service contract, matching the entry price of Apple's flagship iPhone 5s but offering twice the storage at 32 gigabytes.

Amazon famously does not reveal sales figures for its hardware, including the Fire Phone, Kindle Fire, or Kindle e-readers. But data tracked by research firm Chitika in August found the Fire Phone accounting for about 0.015 percent of all U.S. and Canadian smartphone traffic.

Those figures, coupled with the swift discount on the Fire Phone, could suggest that Amazon's first stab at the smartphone market hasn't sold quite as well as the online retailer hoped it would.

The price cut also comes just as Apple is expected to announce its own next-generation handset, known informally as the "iPhone 6." Apple is set to hold a keynote presentation Tuesday in Cupertino, Calif., where it's widely expected to show off its redesigned new iPhone in two new screen sizes of 4.7 and 5.5 inches.

The Fire Phone represents Amazon's latest attempt to compete with Apple in the hardware market, attempting to tie customers into its stores and ecosystem of services with tightly integrated software and devices. The company also competes with Apple's iPad with a range of Kindle Fire devices.

The Fire Phone and Kindle Fire all utilize Amazon's low-margin, high-volume strategy. Some have speculated that some of its devices actually lose Amazon money, in hopes that they will be able to sell customers in to services like Prime, as well as content sales for books, movies and music.
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Comments

  • Reply 1 of 70

    Do you smell it? Redolent of cold sweat and urine? That’s the smell of desperation.

  • Reply 2 of 70
    pmzpmz Posts: 3,433member
    Geez, what a way to say what we already knew...

    "We have to, because our device won't compete with whatever Apple shows tomorrow."
  • Reply 3 of 70

    Still too much...

  • Reply 4 of 70
    dimmokdimmok Posts: 359member

    Fire Sale on the Fire Phone.

  • Reply 5 of 70
    eriamjheriamjh Posts: 1,644member
    They still "sell" those? I hadn't heard anything about it since it launched.
  • Reply 6 of 70

    Why would anyone buy an Amazon phone? The thing is like an endless commercial. Buy this buy that, blah blah blah...

  • Reply 7 of 70
    slurpyslurpy Posts: 5,384member
    Slashing the price by $200 a month after launch. Talk about success.

    It should have launched at $0 to begin with. It's the only way it could have ever gotten any traction, and its about what its worth. Amazon was insane to launch at $200 under contract.
  • Reply 8 of 70
    Poor little Bilderberger Bezos.

    WPOS.
  • Reply 9 of 70
    512ke512ke Posts: 782member

    What about all the people who paid $200 for this device under contract? 

     

    Will Amazon give them all refunds?  I hope so.

     

    Personally, if I had payed $200 and then Amazon reduced the price to 99 cents without issues me a refund a short time later, I would be pissed.

  • Reply 10 of 70

    LOL. This is too sad.

     

    But I'll bet the stock went up. /s

  • Reply 11 of 70
    Quote:

    Originally Posted by anantksundaram View Post

     

    LOL. This is too sad.

     

    But I'll bet the stock went up. /s


    actually it went down, 1.17%

  • Reply 12 of 70
    sflocalsflocal Posts: 6,095member

    Amazon couldn't even pay me enough money to use that piece of trash.  



    Remember all those first-time iPhone buyers back in 2007 that rioted after Steve Jobs dropped the price a month (or whatever) later?  How's about all those iHaters that jumped on that price-drop to ridicule the buyers?



    Well?  I expect (and demand) that Amazon do the right thing and refund the difference to those first-time buyers too.  I know they won't, but they should.

  • Reply 13 of 70
    Quote:
    Originally Posted by Slurpy View Post



    Slashing the price by $200 a month after launch. Talk about success.



    It should have launched at $0 to begin with. It's the only way it could have ever gotten any traction, and its about what its worth. Amazon was insane to launch at $200 under contract.

    I agree. They screwed up on this one. If they had launched at 99 cents, it could have been a mediocre hit. Now it's pretty much dead...

     

    Also, I don't think this phone is as "Selling Amazon" focused as people keep giving it crap for. Look past the biased reviews and you'll see a decent phone, but being the same price as an iPhone 5S (arguably the best phone available) is crazy, who would get this when you could get a 5S at the same price?

  • Reply 14 of 70
    The first iPhone cost $599. People called Apple crazy and said the iPhone would never sell at that price. Now granted, they did lower the price several months later. But this Fire phone is something entirely different... it's a gimmick in your pocket designed to increase sales through Amazon.
  • Reply 15 of 70
    Quote:

    Originally Posted by bloggerblog View Post

     
    Quote:
    Originally Posted by anantksundaram View Post

     

    But I'll bet the stock went up. /s


    actually it went down, 1.17%


     

    Get with it...

  • Reply 16 of 70
    zabazaba Posts: 226member
    Shit is still shit even when it's free shit.
  • Reply 17 of 70
    crowleycrowley Posts: 10,453member
    Quote:

    Originally Posted by dstarsboy View Post

     

    I agree. They screwed up on this one. If they had launched at 99 cents, it could have been a mediocre hit. Now it's pretty much dead...


     

    A hit that loses you close to $200 per unit isn't much of a hit at all, even in Amazon's crazy world.

  • Reply 18 of 70
    apple ][apple ][ Posts: 9,233member
    Quote:

    Originally Posted by 512ke View Post

     

    What about all the people who paid $200 for this device under contract? 


     

    Screw them. There is something called personal responsibility, and this happening was pretty much a no brainer.

  • Reply 20 of 70
    pdq2pdq2 Posts: 270member

    I'm waiting for 99 cents off contract.

     

    But only if they throw in Amazon Prime.

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